China's manufacturing sector has shown a return to expansion in October after experiencing five consecutive months of mild decline. The official purchasing manager index (PMI) recorded a seasonally adjusted 50.1, an improvement from the 49.8 reported in September, placing it just above the critical 50 mark that delineates growth from contraction, as indicated by the National Bureau of Statistics (NBS).
Key sectors such as basic raw materials, equipment manufacturing, high-tech manufacturing, and consumer goods continued to demonstrate stable and positive performance, according to the state-run Xinhua news service, which cited the NBS report. The automotive sector also experienced growth. However, the PMI sub-index for new export orders fell to 47.3 in October, down from 47.5 in September, indicating a potential lull in international markets.
Meanwhile, the official China non-manufacturing PMI recorded a seasonally adjusted 50.2 in October, a slight increase from the 50.0 in September, driven by heightened demand stemming from increased tourism during the National Day holiday and related service activities, as per the NBS. The overall PMI, which combines both manufacturing and service sectors, improved to a seasonally adjusted 50.8 in October from 50.4 in September.
Recently, Beijing officials and the People's Bank of China have rolled out various macroeconomic stimulus measures, with further initiatives anticipated from the upcoming meeting of the National People's Congress Standing Committee. In the third quarter, China's gross domestic product (GDP) grew by 4.6% year-on-year, slightly below the annual national growth target of 5%, as reported by officials in mid-October..